The
Disruptive inspiration for NSDL:
The 17,625 and new DP Service Centres
can be tapped to open Saving Bank Accounts with the icing on the cake being linked
Demat
Accounts with minimal service charges.
As ASBA is mandatory from January 1,2016
the float in the respective saving bank accounts will be higher as compared to
float in SB Accounts of other Payment Banks.
What is your opinion?
On 19th August 2015,
Reserve Bank of India announced the first set of entities that were issued “in-principle”
approval to set up payments banks.
These 11 entities “in-principle” approvals will
be valid for a period of 18 months, during which time the applicants have to
comply with the requirements under the Guidelines and fulfil the other
conditions as may be stipulated by the Reserve Bank.
On being satisfied that the applicants have
complied with the requisite conditions laid down by it as part of
“in-principle” approval, the Reserve Bank would consider granting to them a
licence for commencement of banking business.
Each of the 11 Applicants has their own set
of strengths and weaknesses.
Each applicant has already commenced the
brainstorming part.
Each applicant in the next six months will unveil
roadmaps towards the goal of a full fledged licence to commence Banking.
Numerous articles in print and digital
financial publications are trying to unravel of this Reserve Bank of India
notification.
Securities Exchange Board of India (SEBI)
Press Release on June 23rd 2015 offers some pointers about NSDLs’
path towards a full fledged banking licence.
The below SEBI Board decision will be
keenly analysed by NSDL Strategy Team - Streamlining the Process of Public
Issues - Obviating the need to issue cheques
In order to reduce the post-issue
timeline for listing from existing T+12 days to T+6 days, increase the reach of
retail investors and reduce the costs involved in public issue of equity shares
and convertibles, SEBI Board took the following decision based on
ASBA popularity.
Presently more than 99.5 % applications are
received from centres where ASBA facility is available. Based on an analysis of
a few public issues, in terms of amount, ASBA applications account for 99.90%
of the total bid amount received from all investors.
Considering
the reach and advantages of ASBA, SEBI has made it mandatory for all investors
to make ASBA applications.
Amongst many other significant advantages,
ASBA enables investors to give the mandate for payment of application money in
the application form itself without suffering loss of interest for the
intervening period.
ASBA also obviates the hassle of refund of
money by the issuer as per the difference in application amount and the amount
for which shares are finally allotted.
In order to substantially enhance the
points for submission of applications, Registrar and Share Transfer Agents
(RTAs) and Depository Participants (DPs) shall also be allowed to accept
application forms (both physical as well as online) and make bids on the stock
exchange platform. This will be over and above the stock brokers and banks
where such facilities are presently available.
To help intermediaries and banks to modify
their existing systems and train their staff and also enable the investors to
adapt to the new system, there will be a phase-in period of 6 months.
Accordingly, a public issue which opens on or after January 01, 2016 will have
to follow the new system.
NSDLs promoters/shareholders are:
Promoters
- Industrial Development Bank of India
Limited (Now, IDBI Bank Limited)
- Unit Trust of India (Now, Adminstrator
of the Specified Undertaking of the Unit Trust of India)
- National Stock Exchange of India
Limited
Other
Shareholders (i.e a captive market share)
- State Bank of India
- HDFC Bank Limited
- Deutsche Bank A.G.
- Axis Bank Limited
- Citibank N.A.
- Standard Chartered Bank
Few
Statistics:-
Active
Client Accounts -- 1,39,47,307
Depository
Participants -- 270
DP
Service Centres -- 17,265
DP
Geographical Coverage (Cities/Towns) – 1632
